FAPRI updates U.S. ag markets baseline projections

News

FAPRI updates U.S. ag markets baseline projections

The Food and Agricultural Policy Research Institute has updated their projections for baseline prices for U.S. ag markets showing modest recovery in prices over the next few years.

Pat Westhoff, the director of FAPRI, tells Brownfield exports are key to increasing baseline prices.

“We’ve (FAPRI) built in a pretty good size increase in U.S. exports in the 2021 marketing year, and we also continue to increase [exports] thereafter as well,” Westhoff said.

He said much of that trade will be with China but expects other markets to continue to develop. Westhoff says baseline prices will also depend on competition from South America.

“Brazil is a major exporter of corn, you know, they’ve shown the ability to increase those sales, not just to corn but of soybeans at the same time,” Westhoff said.

FAPRI is projecting corn’s baseline to be nearly $3.40 next year and over $3.50 in 2022 and soybeans to pass $9.00 by 2022.

Pat Westhoff Interview

.